Supplier Management

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ITIL Version: ITIL Version 3 (ITIL V3)

Process Objective: To ensure that all contracts with suppliers support the needs of the business, and that all suppliers meet their contractual commitments.

Part of: Service Design

Process Owner: Supplier Manager

ITIL V3 vs. ITIL V2: Supplier Management

Supplier Management was covered within ICT Infrastructure Management in ITIL V2
In ITIL V3, Supplier Management is part of the Service Design process to allow for a better integration into the Service Lifecycle

Sub-Processes of Supplier Management (ITIL V3)

Providing the Supplier Management Framework: Process Objective: To provide guidance and standards for the procurement of services and products. This includes the provision of the Supplier Strategy and the preparation of standard Terms and Conditions.

Evaluation of New Suppliers and Contracts: Process Objective: To evaluate prospective suppliers in accordance with the Supplier Strategy, and to select the most suitable supplier.

Establishing New Suppliers and Contracts: Process Objective: To negotiate and sign a binding contract with a supplier. This process is mainly applied for significant investments, either in externally provided services or in technology.

Processing of Standard Orders: Process Objective: To process orders for commodity products and services, and to order pre-defined items within the boundaries of existing contract frameworks.

Supplier and Contract Review: Process Objective: To verify if the contractually agreed performance is actually delivered, and to define improvement measures if required.

Contract Renewal or Termination: Process Objective: To carry out regular renewals of contracts, to assess if those contracts are still relevant, and to terminate contracts which are no longer needed.